SCCI warns of protests over fixed tax on traders

PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) has rejected the imposition of a fixed tax on traders, warning of protests if the government does not withdraw the levy.

SCCI President Fuad Ishaq said this while addressing a delegation of traders from Saddar Bazaar, led by Tajir Ittehad Khyber Pakhtunkhwa President Mujeebur Rehman on Monday.Other members of the traders’ delegation included Aftab Ahmad Khan, Naveed Ibrar, Malik Saeed, Nisar Khalil, Naseeruddin Hashmi, Javed Khan, Sumeer Manzoor, Muhammadullah, Nauman Durrani, and Fazal Mehmood.

Mujeebur Rehman informed the meeting about the traders’ concerns about the imposition of SRO: 1064 (I)/2024, dated July 22, 2024, by the Federal Board of Revenue, which imposes a fixed tax ranging from Rs30,000 to Rs45,000 per shop. Tajir Ittehad urged SCCI to effectively address this issue with the government and FBR.

In response, SCCI President Fuad Ishaq assured that all efforts would be made to withdraw the tax.Fuad Ishaq stated that the taxation system had completely failed in Pakistan. He added that due to flawed policies of the government and FBR, the economy remains 20 percent documented and 80 percent undocumented.

Emphasizing the need to simplify the tax system, the SCCI chief suggested replacing the current Australian tax law imposed in Pakistan with a system patterned after the UAE to make

it easier.

Fuad Ishaq recalled that SCCI had already rejected the taxation measures in the fiscal budget 2024-25. He mentioned the Tajir Dost Scheme, which the chamber had suggested be implemented with a 20-year sovereign guarantee through parliament.

However, he added, the scheme, which had become part of the budget document, proved to be anti-trader rather than trader-friendly, and SCCI rejected it.Commenting on Pak-Afghan bilateral trade, the chamber president said that due to the government’s wrong policies, the mutual trade volume between the two neighbouring countries had dropped to $500 million from earlier $3 billion.

The SCCI chief proposed bringing tariffs on 212 items to the duties of Afghanistan, allowing imports of these items to traders, and then re-exporting them to eliminate smuggling.He stated that Pakistan was earning foreign exchange worth $75 billion through human resources, with $35 billion coming through banking channels and $40 billion through other means or resources.